Oklahoma § 36-4109 - Group annuity; nonforfeiture benefits

§ 36-4109. Group annuity; nonforfeiture benefits

In group annuity contracts there shall be a provision or

provisions, with an appropriate reference thereto in the

certificate, specifying the nature and basis of ascertainment of the

benefits which will be available to an annuitant who contributes to

the cost of the annuity and the conditions of payment thereof in the

event of either the termination of employment of the annuitant,

except by death, or the discontinuance of stipulated payments under

the contract. Such provision or provisions shall, in either of such

events, make available to an annuitant who contributes to the cost

of the annuity a paid-up annuity payable commencing at a fixed date

in an amount at least equal to that purchased by the contributions

of the annuitant, determinable as of the respective dates of payment

of the several contributions, as shown by a schedule in the contract

for that purpose, based upon the same mortality table, rate of

interest and loading formula used in computing the stipulated

payments under such contract. Such provision or provisions may, by

way of exception to the foregoing, provide that if the amount of the

annuity determined as aforesaid from such fixed commencement date

Oklahoma Statutes - Title 36. Insurance

would be less than One Hundred Twenty Dollars ($120.00) annually,

the insurer may at its option, in lieu of granting such paid-up

annuity, pay a cash surrender value at least equal to that

hereinafter provided.

If cash surrender value, in lieu of such paid-up annuity, is

allowed to the annuitant by the terms of such contract, it may be

either in a single sum or in equal installments over a period of not

more than twelve (12) months and it shall at least equal either (a)

or (b), whichever is less:

(a) The amount of reserve attributable to the annuitant's

contributions less a surrender charge not exceeding thirty-five

percent (35%) of the average annual contribution made by the

annuitant; or

(b) The amount which would be payable as a death benefit at the

date of surrender. Such contract shall also provide that in case of

the death of an annuitant before the commencement date of the

annuity, the insurer shall pay a death benefit at least equal to the

aggregate amount of the annuitant's contributions without interest.

If any benefits are available to the holder in either of such

events, the contract shall contain a provision or provisions

specifying the nature and basis of ascertainment of such benefits.

Laws 1957, p. 385, § 4109.